Data released by the National Statistics Institute (INE) showed that the unemployment rate fell significantly in the second quarter, reaching its lowest level since the third quarter of 2008, as a continued tourism boom added jobs. However, Spain still has the eurozone's highest rate of unemployment.
According to the report, the unemployment rate fell to 11.27% compared to 12.29% in the first quarter. Economists had expected unemployment to fall to 11.4%. The number of unemployed decreased by 188 thousand compared to the first quarter, to 2.755 million, while the number of employed increased by 201 thousand, reaching 21.685 million. Meanwhile, the labor force participation rate increased to 58.9% from 58.63% in the first quarter.
INE said that the largest increase in the number of jobs was recorded in the service sector (over 300,000), with a surge in tourist arrivals creating new posts across the country. Other sectors, including construction, industry and agriculture, also reported an increase in new jobs.
Meanwhile, separate data from INE showed that retail sales increased by 0.3% in June, partially offsetting the May drop (-0.6%). In annual terms, retail sales growth accelerated to 0.3% from 0.1% in May (revised from +0.2%).